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DECISION

Approving the five-year (2006-2010) plan on development of small- and medium-sized enterprises

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the Government's Decree No. 90/2001/ND-CP of November 23, 2001 on support for development of small- and medium-sized enterprises;

At the proposal of the Planning and Investment Minister,

DECIDES:

Article 1.- To approve the five-year (2006-2010) plan on development of small- and medium-sized enterprises (SMEs) with the following principal contents:

I. VIEWPOINT ON DEVELOPMENT OF SMEs

1. To consistently realize the policy on development of a multi-sector economy. All economic sectors conducting business activities in accordance with law constitute important components of the socialist-oriented market economy, joining together in long-term development, cooperation and fair competition.

2. The State creates a legal environment and adopts favorable mechanisms and policies for SMEs of all economic sectors to develop on an equal footing and compete in a fair manner in order to mobilize all internal resources combined with external resources for development investment.

3. To develop SMEs in an active and sustainable manner toward higher quality, larger quantity and economic efficiency, contributing to creating more jobs, eradicating hunger, alleviating poverty and assuring social order and safety; to develop SMEs in association with national targets and socio-economic development targets, taking into account the conditions of each region or locality; to promote the development of rural industries and traditional trade villages; to attach importance to the development of SMEs in deep-lying and remote areas, areas facing difficult socio-economic conditions; to prioritize the development of, and provide supports for, SMEs owned by ethnic minority people, women or disabled people; to attach importance to the development of SMEs that invest in production of highly competitive products.

4. To gradually shift the State's support activities from direct support to indirect support in order to raise the capability of SMEs.

5. To associate business activities with environmental protection and social order and safety maintenance.

6. To raise the awareness of administrations of all levels about the position and role of SMEs in socio-economic development.

II. OBJECTIVES OF DEVELOPMENT OF SMEs

1. General objectives:

To accelerate the growth rate of SMEs, create a fair competition environment, raise the national competitiveness, and create favorable conditions for SMEs to make greater and greater contributions to economic growth.

2. Specific objectives:

a/ The number of newly established SMEs will be around 320,000 (a year-on-year increase of around 22%);

b/ The growth rate of newly established SMEs in provinces with difficult conditions will be 15% by 2010;

c/ The ratio of SMEs engaged in export activities will reach 3 - 6% of the total number of SMEs;

d/ Around 2.7 million new jobs will be created in the 2006-2010 period;

e/ An additional number of 165,000 laborers will be technically trained to work in SMEs.

III. MAJOR TASKS

1. To further improve and ensure the stability of the legal framework, reform administrative procedures and financial policies in order to create an equal, transparent and open investment and business environment for SMEs to develop.

2. To assess impacts of policies on SMEs, periodically organize talks between state agencies and SMEs, thereby guiding and responding to burning requirements for business development.

3. To adjust the tax system in an appropriate manner in order to encourage people to start their own businesses, and reform the accounting regimes and reporting forms in the direction of simplification in order to encourage enterprises to declare and pay taxes voluntarily, facilitating tax payment by enterprises while combating tax evasion.

4. To redress the shortage of ground areas for production, and step up environmental protection by elaborating and publicizing land use planning and plans; to create conditions for the development of industrial parks and industrial complexes of reasonable sizes and offer suitable land rent rates to SMEs; to support the relocation of polluting SMEs from population areas and urban centers to industrial parks or industrial complexes.

5. To revise and supplement regulations in order to accelerate the setting up of credit guarantee funds for SMEs in localities; to promote the development of banks of various types and joint-stock commercial banks that exclusively serve SMEs, including the development of financial leasing operation and the provision of loans without mortgaged security assets to SMEs having feasible and efficient projects, in order to satisfy their investment and business capital demands.

6. To accelerate the implementation of programs on technical assistance, popularization and application of advanced technologies and techniques to SMEs, thus raising their technical management capability; to boost technological cooperation and exchange between enterprises of different sizes; to develop efficiently research programs susceptible of practical application; to study, amend, supplement and promulgate the system of technical standards, the system of quality management and certification comformable with international standards. To encourage SMEs to join in programs on cooperation among branches or regions and development of supporting industries.

7. To speed up the building of an enterprise information system to serve as a basis for the assessment of the actual state of SMEs, the formulation of policies and the supply of information in service of production and business activities of enterprises.

To organize the education and popularization of business experience and examples of determination to lawfully make fortunes among the population. To study the experimental inclusion of business knowledge in the curricula of general education schools, universities, technical secondary schools and vocational schools in order to promote the business spirit, develop the entrepreneurs' culture and gain the entire society's support for enterprises conducting business in accordance with law.

8. To develop the market of business development services (for both suppliers and demanders), and perfect the legal environment for business development services, attaching importance to the management of service quality. To encourage associations to provide business development services, actively carry out programs on assistance for development of SMEs and take part in the formulation of mechanisms, policies and programs in support of SMEs in order to enhance their role in providing assistance and representing legitimate interests of SMEs.

9. To raise the efficiency of activities of coordinating assistance for the development of SMEs, and enhance the role of the Council for Promotion of Development of SMEs; to enhance the capacity of localities for management, promotion and development of SMEs.

IV. GROUPS OF SOLUTIONS

1. Group 1: Simplification of regulations to facilitate the business registration, market entry and activities of enterprises.

2. Group 2: Creation of conditions for SMEs to have ground areas for their production.

3. Group 3: Creation of favorable conditions for SMEs to get access to capital sources, giving priority to enterprises producing export goods and goods with high added values.

4. Group 4: Formulation of programs on assistance for raising the capacity and improving the competitiveness of SMEs.

5. Group 5: Development of human resources to satisfy the requirements of development of SMEs in the 2006-2010 period.

6. Group 6: Creation of a socio-psychological environment favorable for the sector of SMEs.

7. Group 7: Management of implementation of the plan on development of SMEs in the 2006-2010 period.

The groups of solutions and responsible implementing agencies are specified in the Appendix to this Decision.

V. ORGANIZATION OF IMPLEMENTATION

In order to organize the implementation of the 2006-2010 five-year plan on development of SMEs, ministries, branches and localities shall integrate programs on supports for development of SMEs with national target programs as well as their specific target projects and programs with a view to efficiently using the resources.

At the central level:

1. The Council for Promotion of Development of SMEs shall act as the general coordinator in the course of implementation of this plan and assess the implementation of this plan by responsible implementing agencies in ministries, branches and localities. Its tasks include:

a/ Overseeing responsible implementing agencies and reporting on problems arising in the course of plan implementation;

b/ Proposing to the Prime Minister necessary changes in or adjustments to programs of action or groups of solutions to address problems that arise in the course of implementation and make the plan infeasible and behind the set objectives;

c/ Setting up working subgroups to organize the implementation of the plan on development of SMEs, which are headed by representatives of responsible implementing agencies. Each subgroup consists of representatives of concerned functional agencies responsible for realization of groups of solutions and specific solutions according to their contents.

2. The Finance Ministry shall assume the prime responsibility for, and coordinate with the Planning and Investment Ministry in, synthesizing and elaborating plans on state budget funds for realization of solutions set forth in the program of action for the plan on development of SMEs according to regulations.

3. Ministries and branches shall prepare conditions for applying each solution as scheduled.

At the provincial level:

1. Provincial-level People's Committees shall work out their own plans on development of SMEs, plans of action and implementation schedules; coordinate with ministries and branches in developing SMEs in their localities; and arrange personnel and allocate annual budget funds for implementation of those plans in their provinces.

2. Provincial-level coordinating committees for implementation of plans on development of SMEs shall be set up under provincial-level People's Committees and headed by vice presidents of provincial-level People's Committees. Members of a provincial-level coordinating committee for implementation of plans on development of SMEs include representatives of relevant provincial services and enterprises' associations in the province, and the director of the provincial Planning and Investment Service acts as its permanent secretary.

3. Tasks of the provincial-level coordinating committees for implementation of plans on development of SMEs and their permanent secretaries are decided by provincial-level People's Committees.

4. Annually, provincial-level People's Committees shall send reports on implementation of plans on development of SMEs to the Planning and Investment Ministry for summing up and subsequently reporting to the Prime Minister.

Article 2.- This Decision takes effect 15 days after its publication in "CONG BAO."

Article 3.- The Chairman of the Council for Promotion of Development of SMEs, ministers, heads of ministerial-level agencies, heads of government-attached agencies, and presidents of People's Committees of provinces and centrally run cities shall implement this Decision.